If any lessee of educational lands fails to perform any of the covenants of the lease or is in default of semiannual rental due the state for a period of six months, the Board of Educational Lands and Funds may forfeit the lease of such person. If the lessee is in default in the payment of rental, the board may cause notice to be given such delinquent lessee in accordance with section 72-236 that, if such delinquency is not paid within thirty days from the date of service of such notice by either registered or certified mail or the date of the first publication of such notice, his or her lease will be declared forfeited. If the amounts due are not paid within such time, the board may declare the lease forfeited and the land described therein shall revert to the state. Before a forfeiture of a lease shall be declared for a failure to perform the covenants of the lease other than the payment of rentals, the board shall give notice of such proposed forfeiture to such lessee, or to his or her personal representative or next of kin if he or she is dead, by either registered or certified mail, setting forth a time such a lessee, or his or her personal representative or next of kin, may show cause and have a hearing as to whether or not such lease shall be forfeited. The order of forfeiture shall be entered upon the records of the board. The board is required to serve such notice of delinquency and proceed with the forfeiture, as stated in such notice, at least once in each year. The provisions of this section and sections 72-236 to 72-239 shall apply to all lands heretofore or hereinafter leased as educational lands of this state.

Right of redemption from forfeiture of contract of sale was governed by law in effect at time of sale. Stoller v. State, 171 Neb. 93, 105 N.W.2d 852 (1960).

Where bank was assigned lease as security and did not have actual possession of lands, it was not liable to state for delinquent rentals. State ex rel. Johnson v. Commercial State Bank, 142 Neb. 752, 7 N.W.2d 654 (1943).

To declare a forfeiture for failure to pay interest on a contract for the sale of school land is mandatory, and, when no such forfeiture is declared, the contract remains in full force and effect. Mulhall v. State, 140 Neb. 341, 299 N.W. 481 (1941).

The present provision of this section for service of notice of cancellation of a contract of sale of state school lands because of delinquency of interest payments may be made applicable to contracts issued prior to enactment of the amendment; and, if after notice is given and forfeiture is declared, the purchaser fails to redeem, all rights in such contract shall be lost. Spahr v. Godfrey, 130 Neb. 539, 264 N.W. 560 (1936).

Under former law, the requirement of this section that notice of default be served upon the lessee before a forfeiture can be declared is not met by mailing such notice in a registered letter to a deceased lessee, and until sufficient notice is given, a valid lease to another cannot be made. State ex rel. Green v. Cowles, 90 Neb. 839, 134 N.W. 959 (1912).